on friday, a father and son drowned in the bay near golden gate bridge, they were fishing. a wave pulled in the son. the father dove in to try to save him. he was also swept away. sky 7 shot this video as a u.s. coast guard station after the search ended. another boy with that father and son did survive. >> police are investigating a tragic series of incidents that started with a report of gunfire, then a high speed gaet way, ending with death two of innocent people. this deadly car crash happened blocks away. leanne? >> this accident occurred right here, shortly after 8:00 this morning. police have stopped the driver of one car when officers got out, they say the driver bolted, within seconds, two people were dead.

this is surveillance video from insifd a convenience store, unemployee move as way from the door moments from a white car slams into the building. this car has just been broadsided by the chevy. the driver of the chevy running away from police. the chief told reporters this morning officers stopped the driver because they suspected he fired shots earlier near 15th and valencia. >> officer as approached the vehicle, this vehicle ran through the next two intersection autos the black chevy hit the white toyota at intersection of 21 and south vanness. the passenger was identified by her brother-in-law, as a 29-year-old. >> jose lopez says she and the driver were coming back from a

party. the driver, her nephew, was sent to the hospital, he's in critical condition. the owner arrived after the accident. >>a. this driver was shocked and couldn't talk. they pulled him out. >> a third victim, a pedestrian was also hit and killed. >> as the vehicle was thrown against the store there was also a mid 20-year-old male pedestrian walking into the store. he who also pronounced dead at the scene. >> police found a gun. the gang task force called in. he is recovering at san francisco general hospital. >> and police say the driver will be charged for the death of the two victims and will be charged with possession of a firearm. i'm live in san francisco, abc 7 news. >> and the house failed to

pass a fiscal of cliff and tonight a bill is in limbo. we have word that house republicans want to amendment the bipartisan agreement. >> house republicans dovéyfu like the senate deal because they say it doesn't address federal spending. it protects 98% of americans from higher tax rates. the senate passed a deal at 2:00 in the morning. extends the cuts for every american making under $400,000 per year, preventing a tax hike on estates valued at less than $5 million providing unemployment for two million americans. this morning, nancy pelosi called on speaker boehnergógm fr a vote. >> our speaker said when the senate acts we'll have a vote in the house that. is what we expect. that is what the american people deserve. >> husband republicans say be add and

house republicans are talking tonight about adding spending cuts to the senate version. which would toss the bill back to the senate. >> when faced with a mountain of debt that we're heading for like an airplane did we climb over it? no. what we're going to do is put on nearly another trillion worth of debt. >> the senate version would add $4 trillion over 10 years, mostly was of extend tending cuts to everyone making under $400,000 a year. this afternoon, senate majority leader adjourned senate until noon tomorrow we're hearing house republicans are talking about amendmenting the deal if they have votes to get an amendment if they don't, we're told that they'll put the senate version up for an up, or down vote,. >> we're hearing within the next hour, perhaps about 6:00 we're going get house vote on that senate version. >> well, that would be good

news. we'll be back at 6:00 for the latest. >> never ending story. unfortunately. >> yes. lot of breaking news here, thank you very much. >> milk price increases have been spared part of a farm bill compromise, negotiate years agreed to extend portions through september. once approved the price could have doubled next month. milk sells for $4 a gallon. >> lawmakers debate whose taxed in the fiscal cliff talk there's is another tax cut that expired fa that affects everybody. social security payroll tax reduced by a third in 2010. idea to stimulate the economy this, year goes up to 6.2%. and that means that a person with a gross gros income of $50,000 will pay $1,000 more in taxes this year, most people are not happy to see hold tax rate return. >> trying to save up to buy a house.

so looking at how much it will be going up, i don't know if i'll be able to afford it as soon as i want to. >> it's paycheck to paycheck z this is just going to make it tougher for us. >> the increase is expected to generate $125 billion for the federal budget. economists warn we should expect a similar reduction in consumer spending. >> san francisco police need your help to catch shooter who's injured three people during a new year's eve celebration. a 12-year-old boy sitting in front of pier 23 rest spot was hit in the ankle. he was taken to the hospital and is he expected to be okay. a bullet grazed a man sitting next to him. >> out pops, we weren't sure if they're fire works or what it was. it happened so close. and so fast. and everybody just split up and started running. >> and 45 minutes earlier a man shot in the hand at jefferson and maceon. no.

>> none of the victims related. >> pg&e crews at the scene of a tree that toppled thisf.c morning that fell this morning part of the tree ended up leaning against power lines. so far has not disrupted power or caused damage but it's in the process of being cleared. >> coming up on abc 7 news at 5:00 get ready for a big drop in temperatures in parts of the bay area tonight. >> that is true. we have a freeze warning and a frost advisory. i'll show you where coldest spots will be naft in just a moment. >> and'kjñ then, from 7 on your side michael finney where your pg&e bill is expected to rise starting this month. where customers can save money. >> and meet one of the bay area's babies born this year. this little guy has a special

a naked man with a sword faced off against police for three hours this morning. officers say they first spotted this man in a vehicle after someone report td a person with an assault rifle. they pulled up behind him, the man man did something unexpect ootd subject exited the vehicle without any clothes basically naked with a sword z again, his statements when he got out of the vehicle were that you're going have to kill me. >> the man ran from the scene, slamming his sword on the ground and surrendered. officers recovered ab assault wem wep onfrom the car. the man was treated for injury autos the san jose mayor hopes

the new year will bring piece paes and good will for him. the mayor advise yilted several fire stations this morning. he's done this tour before but 2012 was a stressful time between reed and the public safety unions. he pushed through an initiative. >> we're hoping just to maintain what we have and have a deficit coming up so we're hoping not to have to cut fire services. >> he says the city will>vv continue to find other ways to increase reviews and that may include more pension reform. >> first baby born in 2013 will have quite a storyóyk;ñ to tell, delivered by a family member. abc 7 news joins us live with the story. >> happy new year to you. charlie sparks wasn't due to

come into the world but his mother went into labor. after 12 hours of being in labor her doctor who happens to be her granddaughter decided to schedule a c section for the stroke of midnight, new year's day. she skront imagined a better gift. a new great grandson she silver delivered but this isn't the first time. this is the 10th time she's delivered a family member. >> i have eight grandchildren and i delivered seven of them, and three great grand chimpblt i delivered all of them. so... 10. >> her granddaughter lives in bakersfield. >> she came to visit for christmas. and was having contractions. so we couldn't send her home. and... she has been laboring monday night. son would need to be delivered by c section she proceeded.

>> she -- i was shaking the whole time. >> she was a little scared about c section part. it was a little less scary to know her grandma was in there with her. >> at the stroke of midnight, january 1, little harley sparks came into the world. he is named after his dad, thomas harley sparks, weighing eight pounds two, and a half houns ounces and 21 inches lock, his family says he's pretty perfect he doesn't cry a lot. hopefully, he's not going to cry are the. >> and that is not likely to happen, kara never thought this would happen. her first baby. the first born on the first day of the new year. >> no. i think it would be impossible to do that. >> and it might be impossible for this family to have a new year's day ever again. >> this will be hard to top. >> not too many people get to say they get to deliver their

grandkids. especially on new year's. >> mom and baby doing well, all four are still here at the hospital and saying after an exciting night a long, sleepless night, they're looking forward to getting rest, now. >> that is an amazing story. another baby born at the stroke of midnight. a little girl born in berkeley. her mother says it was a close call at one stage she thought she'd miscarried. and an ultrasound show that's beautiful baby was health qlee. >> they're so cute. >> yes. and moving on, new year brings changes among them nurk rates for gas and electricity. >> michael finney is here to tell us ups and downs of the bill. >> pacific gas and electric, customers of pg&e will see an increase in rates about a drop in their cash rates.sm&n÷

pg&e is raising rates partly to cover costs of buying more renewable energy also covering upgrades to pg&e huge electric grid. however, on a better note, gas prices going down. that is because of a glut of natural gas on the market. pg&e bills for january going up by 2.6% gas bill goings down. more productions for used car buyers took affect today. two state laws set rules for deal qlorz provide financing foremost customers. many saw older can r cars declined. dealers must provide a warranty covering major parts for at least 30 days. and have can no longer require customers to make payments in person z dealers must notify americans if they have

installed device as louing them to shut off the car by remote control. millions of californians were targeted by conartists in 2012. what where the common frauds? department of consumer affairs has given a list, tech support rouse. a conartist calls and tells a person answering the phone a virus infected their computer. they offer to fix it for a price. then, they take offer the computer by remote access. >> calling for microsoft toin form you your computer is loaded with virus and will crash. >> this f.they're on the computer they can do anything they want. they can install malware to add you to part of a remote controlled network. >> other common fraud smart

phone snatching. someone asks to borrow it, and then, run off with it. and online purchases, we've told but this a million times, seller wires back the difference but finds out later that the virus check was a fake. >> wom, one day into the new year you have me petrified. >> don't allow someone to borrow youru@kphone anymore. >> right. >> don't do it. >> thank you. >> sure. >> we have new details now about what might have led to a break in murder. a victim was killed in his home, his ex-wife called about a break in. court documents uncovered by our media partners sheds light on the lavish spending habits, possibly questionable dealings.

cellular filed a lawsuit by him, a company owned by his wife looking for millions of dollars for management fees paid without receiving services. business associates say he spent the money to pay for prostitutes, he is sort services and homes for female companions. he divorced his wife, yet they still lived together she. was hurt but not killed during the break in. four people have been arrested in connection in the wth murder. police are looking for leads in that murder. >> we have science new. a comet headed our way by the end of the new year would be brighter than full moon. scientists say the comet is scheduled to fly within a million miles of the sun on november 28th. heat could vaporize ice and if it survive that's could produce a spectacular tail visible in the night sky. but again that, is november. we have a ways to wait for that. >> we have spectacular skies

right now. >> we do. clifz right now. here is a live view of the post sunset skri looking at western sky now. this is our east bay camera in emeryville. beautiful clear skies right now. you can see just a little bit of a post sunset glow there. enough clouds off in the western skies to add nice color to the sun sex it's been a beautiful new year's day around the bay area, skies clear at this hour. we look at live doppler 7 you can see know clouds showing up on screens here, no green indicating any sort of precipitation around the area so. it's dry but getting chilly right now. temperatures down to 46 degrees in napa. 47 in fairfield and antioch. 45 in livermore, 47 in los gatos. 49 redwood city. 51 in oakland and san francisco. we're going see temperatures dropping much, much lower

during overnight hours of forecast features are these. freeze warning. and sunny day as head through friday dwochl have a chance of showers over the weekend. let's take a look at this cold sna. we'll have a freeze warning from 11:00 p.m. to 9:00 a.m. overnight hours in the north bay. damage to crops, and vegetation is a possibility. for bay shore line same period, 11 p.m. to 9:00 a.m. a frost advise very in effect. low temperatures in these areas dropping between 30 and 34 degrees tonight. sensitive plants are at risk. bundle up if you're going to be outside. here is a look at our projected lows. expecting lows to drop down to 29 degrees in santa rosa tonight. 28 in napa. 31 in concord. 27 in fairfield.

32 in fremont. 40s here in san francisco. it gets colder than that. spare the air alert remains in affect throughout tomorrow. we've had declining air qaultz remaining with us overnight tonight. meaning no burning of wood or fire logs. now, in atmosphere looking at satellite and radar we have alignment of high pressure to the southeast producing a flow of cool, dry air and we're going remain under dry conditions into the weekend. despite presence of the mass of clouds and moisture. perhaps longer, there is a slight chance of showers of sprinkles coming in on sunday. tomorrow, january 2, sunny skies again, will be pleasantly cool. high temperatures in the south bay into mid-50s.

57 in los gatos, peninsula, highs into mid-50s tomorrow, 54 in san mateo. and 56 in mountain vu. throw mid-50s on the coast. downtown san francisco, a high of 53 tomorrow. bay. 55 in santa rosa. mid-50s on east bay. 55 this in oakland. low to mid-50s inland east bay. and we'll see mid to upper 50s near monterey way of the. bay. here is the accu-weather forecast. and sunny skies dry conditions through friday into the weekend. more of a mix of clouds and sun over the weekend. just a slight chance of showers sunday. doesn't look like a major rain event at all. and then, sunny skies and milder monday and tuesday. high temperatures up around 60 degrees looks like a pleasant km>gv÷ week of . >> yes. steady. >> yes. frigid tonight. >> spencer, thank you. >> still to come, new year's

day surprise fr one family whose loved one is serving in afghanistan. they got more than they expected. they won a trip to the rose bowl. >> at 6:00 exploring exploratorium in final days and excitement surrounding the new building.

net flix on the fritz again, today, the company released a statement saying they're experiencing technical problem was the dvd web si. it's not affecting streaming services. net flix users encountered a similar problem christmas eve. >> two bay area marching bands had moment in the spotlight this morning during 124th annual rose parade. >> this is the stanford marching band, well behaved. all 300 members exhibiting

usual flare. stanford played in the game, beat wisconsin 20-14. thisj.0e is valley christian hih school band. in red uniform there's is a chinese band from beijing. they traveled to practice zpogt today, they east west fusion band. good job. >> very cool. parade had a special moment for a u.s. soldier's wife who won a contest to travel to seat rose parade in person. >> my husband just yernted his name, i just got a call letting me know we won. >> well, viewers didn't know is that her husband, there he is, was flown in from afghanistan and look how happy they are. he had a rose in his hand and a touching reunion. they got to seat parade on

board a float next to dad. they had not seen anymore hymn i moved to new york to work in fashion. i came here with just a suitcase, maybe two. and luckily i found an apartment just three blocks away from t.j.maxx, which was perfect because i needed everything and i still needed to make rent. t.j.maxx is such a great place cause i know when i go in there i'm gonna score. they've got such great deals on all my favorite brands. fashion direct from designers. savings direct to you.

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coming up remembering bart shooting victim oscar grant. his mother's feelings and whether it changed society at all. and why your paycheck is likely to shrink whether there is a deal or no deal in the fiscal cliff crisis. >> michael finney on rules giving disstressed homeowners a better chance of staying in home autos those stories and a lot more coming up on abc 7 news at 6:00. we saw the parade, rose -- rose bowl parade,ógp: stanford beat wisconsin, 20-14. there was hardly any stor store -- scoring in the second half but they win it. rose goal bowle goes stanford. we'll have a live report coming up on our news at 6:00. that is all for now.

world news is next. i'm larry beil. >> i'm cheryl jennings. thanks for this is "world news." tonight, new year, same congress. tonight, still no deal. over the cliff and apparently staying there. after the vice president steps in, both sides got closer, but tonight, the giant setback. and already, your taxes have gone up. hillary's fight. the secretary of state under the close watch of her doctors tonight, with a blood clot near her brain. this evening, the first message from chelsea clinton, seen visiting the hospital. comeback story. our friend and colleague at espn, hannah storm, back hosting the rose parade after a terrifying accident at home. the grill explosion that left her with first and second degree burns. and tonight, the lesson for all of us, as she shares her story right here. and the reunion. the moment at the parade no one saw coming. not even the little boy, stunned by his new year's surprise.